Sunday, May 24, 2009

Supply and Demand in Real Estate Prices and Gas/Diesel Prices

It seems like so long ago that the price of real estate went on an upside ride. In addition to other factors, it really was supply and demand in action.
How long ago was it that a gallon of diesel fuel was $1/gallon more than regular gas. Why is it that I've seen diesel now any where from just 2-3 cents above to 4 cents per gallon less than regular gas. Typically, the price of gas rises several cents in 'honor' of the Memorial Day weekend. And, the price of oil has risen in recent weeks. Is this the gas companies way of making the roads safer by discouraging the purchase of their product? The percent increase at the pump has gone up approximately 2X the cost of the raw material. So, where is the supply and demand?

Happy Holiday and do not forget the real reason for the day off is to remember those who have given their lives so that we may enjoy our freedom.

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